Steel mills expanding capacity

Dongkuk Steel, Korea?s third largest steel firm has completed the construction of its exclusive berth at Pohang New Port in North Kyongsang Province. The dock is for 40,000 and 10,000 DWT ships and will be able to handle up to 2.3 million tonnes of slabs and raw materials for steel production per year. Additionally, Dongkuk is currently building another pier at Pohang New Port that can process 800,000 tonnes of steel, including plates for ships.

Besides its 3.1 million tonnes of steel-capacity berths at Pohang, Dongkuk has also completed the construction of its exclusive dock at Inchon that can handle ships carrying 700,000 tonnes of steel, including scraps for steel recycling, annually, and it is aiming to build another mega berth at Tangjin port in South Chungchong Province by April 2009.

The development comes after Dongkuk Steel forged an alliance with JFE Steel, Japan?s second biggest and the world?s fourth biggest steel producer, last September.

The two steel manufacturers agreed to expand their strategic ties by boosting their cross-shareholdings. Also under the bilateral pact, JFE will provide its steel technology to Dongkuk for the Korean steel firm to establish its integrated steel plate mill in Tangjin by 2009. In return, Dongkuk will purchase JFE?s steel plates.

The plant will have an annual production capacity of 1.5 million tonnes of ship building steel and will be fully operational by 2012.

Following the Dongkuk-JFE ties, POSCO, Korea?s biggest and global No.3 steel maker, announced its move to expand strategic ties with Nippon Steel, the world?s second biggest steel producer. Similar to the Dongkuk-JFE alliance deal, POSCO and Nippon decided to boost their cross-shareholdings and exchange technology.

POSCO has decided to build steel mills in Vietnam and Mexico, as part of its efforts to boost the company?s global steel network. Experts say the Korea-Japan steel ties are aimed at strengthening themselves against possible foreign takeovers and to compete on the growing Chinese steel market.

Meanwhile, Hyundai Steel, Korea?s No.2 steel producer, is pushing to build its first integrated steel mill in Tangjin with an annual production capacity of 7 million tons of steel, including steel sheets for automobiles. Hyundai is aiming to become one of the world?s top 10 steel producers by 2015, with a total output capacity of 22.5 million tonnes per year.